News

TVA has near-record business investment for 2008

Nov. 11, 2008 — TVA Economic Development had its second-best year for business investment in 2008. Volkswagen's decision to build a $1 billion plant in Chattanooga helped boost total investment to the near-record level.

TVA's economic development staff worked with its partners on new and expanding business projects in fiscal 2008 that brought more than $5.5 billion to the Tennessee Valley and should generate about 41,620 jobs.

John Bradley, TVA's senior vice president for economic development, said the numbers are good considering the challenging economic climate. "I think we had a substantial year, given the market," he said.

The $1 billion VW investment should mean about 2,000 direct jobs for the Chattanooga area. Suppliers to the plant will also generate additional investments and jobs, Bradley said. He points to the Toyota plant in Tupelo, Mississippi, as an example of the ripple effect caused by such a large project. Toyota began building its $1.3 billion plant in 2007, and in 2008 an additional $344 million investment and 1,200 jobs were added by suppliers and other related businesses.

Both the VW and Toyota plants are being built on sites certified as automotive megasites by an independent consultant as part of a TVA initiative.

To help meet the current economic challenges, TVA has begun a new program that will offer incentives to companies to stay and expand in the region. Funding for the program won't begin until the fiscal year beginning in October 2009, but TVA will outline the terms of the plan by April.